will an iva be accepted after what i have done

[rockbottom]

following on from last nite, i understand i shouldnt have paid the halifax but i think when you are panicking and have kids survival mode kicks in and you dont think logically or see the consequences it can cause, also paying my brother back rightly or wrongly(i now know wrongly)really did not seem to be an option, he is family and in all honesty i didnt think he would be classed a a creditor.hindsight is a wonderful thing.

any advice as to whether you think trying for f&f myself because of what i have done or trying for a f&f iva would be best

thanks rockbottom

[chris.g]

We've all done 'silly' things when it comes to money and how we've tried to deal with it so don't beat yourself up to much about it. The main thing now is to try to find a solution which is best for you. The experts should be able to advise you on your options.
xx

[angela18]

chris is right.. most of us have done silly things, or lets face it we wouldn't be on here!!

What it is now is you're trying to put it right. Speak to an IP, put your mind at rest, and try not to drive yourself around the bend in the meantime!!

Good luck x

[MelanieGiles]

Can you provide a list of creditors that you still have outstanding, together with the amounts that you paid back to your brother and the Halifax please.

If you only have a couple of creditors left it might be possible to do something with them directly, but if you have several you will find it difficult firstly finding a decision maker in the bank to speak to and secondly getting them all to agree to the same deal. This is where an IVA would possibly work better.

[rockbottom]

hi
already paid
halifax 12000
brother 8000

left owing
lloyds tsb c/c 12041
marbles c/c 2988
barclaycard 2938
egg loan 11079
egg c/c 3246
egg c/c 3840
nat west 2432
tesco c/c 2896
cap one 500
citi 1755
some are mine some are hubbys

rockbottom

[rockbottom]

hi

just going through all my figures again and ive made a mistake, ive deducted the ammount i left over for negotiating twice, i have 22,500 left to try and pay not 20,500.

thanks everyone for all your replys.
rock bottom

[MelanieGiles]

If your brother were to be prepared to repay the £8,000 and stand as a creditor in an IVA, he would get approximately 36% of his debt back - ie £2,880. So an IVA could work for you on that basis.

My gut feeling is that you will struggle to get an acceptable deal with all the remaining creditors on your own, but it might be worth a try. It is such a shame that you panicked about the Halifax, as you had the workings of a very good overall offer.

You might also want to try a DMP company, but a reputable organisation ought to disclose the full position to creditors, which makes me very concerned about the advice you were given by the National Debt Helpline.

[rockbottom]

hi Melanie
thanks for the advice i will have a serious think about speaking to my brother, could you please give me your thoughts on two things, if i decide to make an offer direct, do you think that i should tell the creditors it is from a remortgage, and also should i offer them the full 22,500 and not keep any back for negotiating like the debtline advised, my gut instinct is to offer full ammount as if i am able to negotiate i thought they would think that i can obviously get my hands on more money and at what point then will they stop asking for more.
thanks rockbottom

[MelanieGiles]

My policy is to be honest and upfront about the nature of your offer, and then if creditors feel that you are genuine they will genuinely consider it properly.

How much equity do you have left in your property?

[rockbottom]

thats a difficult one i think on the valuation report it said it 240,000 i have mortgage of 203,000 i think i am at my maximum LTV, but the property is a self build and far from finished, im not sure if the valuation means property when finished or at present state, at the moment we have no funds left to finish it due to our change in circumstance, also i am tied in for 2 yrs with a penalty of 24,000 for early redemption, there are houses in my street up for sale, but not selling which are completely finished to high standards for 250,000, after speaking with estate agents, they said that i would propably be looking at somewhere in the region of 200,000 to 210,000 in its current condition and the state of the market.

thanks rock bottom

[rockbottom]

forgot to add we did consider using the money to finish it and sell it for the maximum price, in order to pay everyone back in full,but i am too frightened to touch the money and take the risk because i really dont think the house would sell even if we finished it completely.

[MelanieGiles]

Redemption penalty of £24k! That is outrageous. Is this the result of the recent remortgage?

If you were to be made bankrupt, the Trustee would get the money that you are currently holding and he/she could wait until the redemption period on the mortgage has expired and then take steps to sell your property. This could mean that creditors would get a lot more back under bankruptcy proceedings than is available under your current offer, but of course that does depend upon the state of the property market over the next couple of years.

[rockbottom]

i know, it is outrageous, and it is from the recent remortgage,and that is for the full 2 yrs it doesnt even go down after year 1 and they had the cheek to add on a product fee of 3000 after completion for the pleasure of it. i have a funny feeling that is why national debtline advised me to be very vague about where the lump sum came from, suggesting that is was from a third party, i dont understand bankruptcy or iva s really and after speaking to several different people at ndline who's oppinions do vary slighty, i am getting extremely confused about the whole thing, i think i will take a day or 2 to try and clear the fuzz which used to be my brain.
thanks rockbottom

[MelanieGiles]

Can I suggest that next time you speak to a licensed insolvency practitioner - the only peopole who require to be professionally qualified to give debt advice. I think that you have been very badly advised about this mortgage.